DISTRESSED REAL ESTATE SERVICES
MAXIMIZING
the Value of Commercial
Real Estate Assets
THE BROOKHOLLOW GROUP
With over 30 years of experience, The Brookhollow Group
has prospered through many up and down real estate cycles.
The partners of Brookhollow have been together for
nearly 20 years and have extensive experience with distressed
asset repositioning and receivership assignments.
In the past 15 years Brookhollow has successfully:
• Managed distressed asset and receivership projects
of approximately 2,700,000 square feet.
• Undertaken real estate projects with an aggregate
value surpassing $700,000,000.
• Acquired existing real estate, both office and industrial,
totaling more than 2,500,000 square feet.
• Leased or sold over 3,000,000 square feet of space
to over 250 companies.
Distressed Real Estate:
Brookhollow understands the urgent nature of non-performing real
estate. Routine, business as usual property management doesn’t
work. When an asset is under stress the tenants and brokerage
community lose confidence in the asset.
As an experienced real estate investor, Brookhollow is able to
approach distressed assets with an owner’s perspective. Rebranding
the property and restoring an efficient operation positions the asset
to compete effectively in the marketplace.
DISTRESSED REAL
ESTATE SERVICES:
• Receivership Duties
• Property Management
• Strategic Project Evaluation
• Repositioning Project Image
• Creative Marketing Incentives
• Construction Management
• Leasing Services
DISTRESSED ASSET
SERVICES CLIENT LIST:
• AEW Capital Management
• Ameritas/ACACIA
• CIGNA Insurance Company
• Colony Capital
• Copley Real Estate Advisers
• John Hancock
• Wells Fargo Bank
CASE STUDY
SOUTH COAST METRO CENTER
CIRCUMSTANCES:
• South Coast Metro Center is a 489,000square-foot, twin 12-story office building
project in Costa Mesa, California,
adjacent to South Coast Plaza.
• Brookhollow was retained by AEW Capital
Management in September, 1995 to
reposition this troubled project with the
goal of maximizing value and selling the
asset at the maturity of a Wells Fargo loan
in July, 1998.
• Brookhollow assumed the typical duties
of a receiver taking control of the project
from a defaulted borrower. Brookhollow
quickly assessed the property needs
and gained control of all banking, cash
management, leases, vendor contracts,
plans, and project entitlement files and
took physical possession of the property.
Financial Structure:
• Brookhollow was retained as a fee management, marketing and development partner
to enhance the value of the project for both AEW and Wells Fargo.
• Wells Fargo had an ownership participation of $13,875,000 over and above the restructured
par loan of $25 million. Creating value during the three year plan was critical to maximizing
value for Wells Fargo.
Challenges:
Results:
• Brookhollow needed to re-establish credibility
of the project to gain trust of the tenants and
brokerage community.
• The project needed 250,000 square feet of
leasing activity in a challenging market.
• The project was repositioned with a new
leasing team, broker incentive program,
quality tenant improvement program, and
common area refurbishment. Instant response
on deals restored credibility and created a
flurry of activity.
• Entitlements for the 50-acre campus needed
to be perfected with the city
of Costa Mesa and adjacent land owners.
• Signed 250,000 square feet of leases over
24 months, bringing the project to 97%
occupancy at the time of sale.
• Perfected the entitlements with the city of
Costa Mesa for the balance of project.
• Sold the asset together with CB Richard Ellis for
$91,000,000. Upon the sale, Wells Fargo was
paid their $25 million loan plus 100% of their
participation of $13,875,000.
DISTRESSED ASSET PROJECT LIST:
MUIRLANDS
OFFICE BUILDING
4000 METROPOLITAN
Orange, CA
Lake Forest, CA
183,000-square-foot,
4-story office building
17,000-square-foot,
2-story office building
lake forest
professional
building
Lake Forest
Executive Center
Lake Forest, CA
Lake Forest, CA
46,000-square-foot,
3-story office building
27,000-square-foot
2-story office building
LAMBERT
OFFICE BUILDING
DaiMler
Commerce Center
Brea, CA
Santa Ana, CA
33,000-square-foot,
2-story office building
166,000-square-foot,
1- and 2-story flex
office park
puente industrial
fullerton
industrial park
Brea, CA
Fullerton, CA
455,000-square-foot,
3 building
industrial complex
228,000-square-foot
industrial park
Calle perfecto
courtyard 2001
Santa Ana, CA
San Juan Capistrano, CA
21,000-square-foot,
2-story office building
45,000-square-foot
industrial building
REGISTER Building
Moreno Valley
Gateway Center
1560 Building
Lake Forest, CA
20,000-square-foot, industrial building
Moreno Valley, CA
38,000-square-foot, 2-story office building
Sunnymead Commerce Center
50,000-square-foot, multi-tenant
industrial park
Morreno Valley, CA
20,000-square-foot industrial building
South Coast Metro Center
Wilshire Financial Tower
Los Angeles, CA
Costa Mesa, CA
380,000-square-foot, 21-story office
building
489,000-square-foot, twin 12-story office
buildings
Brookhollow Office Park
Santa Ana, CA
405,000-square-foot, 1- and 2-story office
park with freeway showroom space
Santa Ana, CA
Great American Savings
Portfolio Southern California
Approximately $200 million of real estate
owned and loans acquired from Great
American Federal Savings Association
National Land Fund
Northern California, Ventura County,
Los Angeles County, Orange County,
San Diego County, Riverside County,
San Bernardino County, Arizona, Nevada
Approximately $400 million of real estate
owned and loans acquired from the RTC
THE BROOKHOLLOW GROUP
TEAM MEMBERS
James Knapp – DO
IT NOW!
“We’ve developed a culture at Brookhollow where we operate with a sense of
urgency. The “Do it Now” motto has defined our attitude from the beginning and
helped us survive tough economic cycles and prosper when times are good.”
Greg Knapp – PERCEPTION
IS REALITY
“Distressed properties create significant stress for the tenants. Their reality is that
of broken promises and neglected management. The key is to instill confidence,
earn trust, and ultimately change their perception of the property and ownership.
Our job is to restore confidence so the property can perform at its maximum potential.”
TEAM MEMBERS
Jeff Kaplan – WHATEVER
IT TAKES
“From our experience in past distressed real estate markets we learned
to be hands on implementing proactive, efficient marketing programs to
achieve ownerships’ goals. It’s critical to be pragmatic and to provide instant
responses to differentiate our assets from others in the market where owners
can be distracted or under capitalized.”
Randy Taylor – INVOLVEMENT,
PRESS ON
“It remains true, whether in an appreciating or depreciating market, that in order
to maximize the value of an asset you need a team approach – collaboration
and involvement among the owner, brokers, vendors, and our team to press on
and make positive things happen.”
151 Kalmus Drive, Suite F-1
Costa Mesa, CA 92626
P: 714.850.3900 F: 714.434.3502
thebrookhollowgroup.com